AIA Group Ltd. reported a stunning 44% jump in new business value during the first quarter of 2025. The insurance giant’s performance exceeded analyst expectations as demand for life and health insurance policies soared across China and Hong Kong. This growth marks a significant turnaround for the company, which had faced headwinds during the pandemic years.
The Hong Kong-based insurer saw its new business value reach $1.28 billion in the quarter ending March 31, according to a company statement released Tuesday. This key metric, which measures the expected profits from new policies sold, reflects growing consumer confidence in these markets despite regional economic uncertainties.
“We’re seeing a fundamental shift in how mainland Chinese and Hong Kong residents view insurance products,” said Lee Yuan Siong, AIA’s Chief Executive Officer. “The pandemic created a lasting awareness about health protection needs, and this is translating into robust demand for our offerings.”
The company’s mainland China operations delivered exceptional results, with a 62% increase in new business value compared to the same period last year. This growth came despite China’s property market challenges and broader economic concerns that have affected consumer spending in other sectors. AIA’s strategy of focusing on China’s higher-income urban population appears to be paying dividends as these consumers prioritize health and financial protection.
Hong Kong operations also performed strongly, posting a 39% increase in new business value. The recovery of cross-border business with mainland visitors returning to purchase policies in Hong Kong has been a key driver. The company noted that sales to mainland visitors have now exceeded pre-pandemic levels, benefiting from both pent-up demand and new customer acquisition.
Market analysts view these results as evidence of AIA’s strong positioning in the region. “AIA continues to leverage its brand strength and distribution capabilities effectively,” said Sarah Chen, insurance analyst at Morgan Stanley. “Their ability to grow during this period of economic uncertainty speaks to both their execution and the underlying demand for protection products.”
The company’s expansion strategy includes deepening its presence in China’s wealthier cities while also exploring opportunities in developing urban centers. AIA currently operates in 100 Chinese cities and has expressed plans to enter 20 more locations by the end of 2026.
Technology investments have also contributed to AIA’s performance. The company reported that nearly 65% of new policy applications now come through digital channels, up from 48% a year ago. This digital transformation has improved customer acquisition costs and streamlined the underwriting process.
“We’ve invested heavily in our digital capabilities, which is making insurance more accessible and convenient for consumers,” Siong explained. “This is particularly important for younger customers who expect seamless digital experiences.”
Industry experts point to several factors driving the increased demand for insurance products in these markets. Rising healthcare costs, aging populations, and growing awareness of protection gaps are motivating consumers to seek coverage. The Chinese government’s efforts to promote commercial insurance as a complement to public healthcare have further supported market growth.
AIA’s competitors are also seeing positive trends, though none have matched AIA’s growth rate this quarter. China Life Insurance Co. reported a 28% increase in new business value, while Ping An Insurance Group posted a 22% gain during the same period.
Despite the strong performance, AIA executives acknowledged several challenges on the horizon. Regulatory changes in mainland China could impact product design and distribution. Economic pressures might also affect consumer discretionary spending in the coming quarters if regional growth slows further.
Looking ahead, AIA remains cautiously optimistic about sustaining growth through 2025. The company has maintained its medium-term targets of double-digit growth in new business value and has increased its dividend payout to shareholders following these strong results.
The insurance industry in Asia continues to show significant growth potential. Insurance penetration rates remain below those in developed Western markets, suggesting considerable room for expansion. AIA’s results indicate that even amid economic uncertainties, consumers in China and Hong
